I think this article is targeted at larger companies with employees, where you need to think a bit more carefully about how much cushion you need, and when is the "last minute" to pull the plug. Depends on the country, but in many, not paying employees salary/wages you owe them for work they've done is a bigger deal legally than going bankrupt with other kinds of debt is. So it's usually better to start laying people off before the very last minute, vs. holding out until you literally have no money left, at which point you just don't send out people's final paycheck. The 2nd approach can lead to a very messy bankruptcy, with lawsuits and government labor agencies involved.
As the article says,
> If you don't do this [i.e., lay off staff and shut down gracefully] and instead end up with zero cash and outstanding payroll, tax or other obligations, things will get Very Bad.
As the article says,
> If you don't do this [i.e., lay off staff and shut down gracefully] and instead end up with zero cash and outstanding payroll, tax or other obligations, things will get Very Bad.